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Romney 11, Nicole 9, Us 9, Israel 8, Motorola 7, S&p 5, United States 4, Lou Dobbs 4, Cheryl 4, Syria 4, Nicole Petallides 4, U.s. 4, Jason 4, Connell 3, China 3, Europe 3, Sandra Smith 3, Google 3, Gary Kelly 3, Dennis 3,
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  FOX Business    Markets Now    News/Business.  
   Business news. New.  

    October 18, 2012
    11:00 - 1:00pm EDT  

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minutes. nicole: we have been following a lot of these financial related stocks. morgan stanley came in with their number. revenue on the rise. they are pulling back a little bit. the wealth management saw improvement. they are coming under some pressure here today. also taking a look at the major market averages. the dow is slightly to the downside. we had a game on ibm, it was weighing so heavily. we managed to squeeze a five-point gain yesterday. the dow is down four points. the nasdaq down a half of 1%. the s&p down one tenth of 1%. that is how we are setting up today and the dollar is stronger. connell: thank you very much.
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dagen: weekly claims for first-time unemployment benefits rising bikes 46,000. connell: the labor department telling peter barnes it was due to one state, much like last week. dagen: what to make of this and the election? bill orlando is here. tell me, tell us, rather, connell is here -- tell us how likely it would be for an incumbent president to get elected. >> no president has won reelection with the rate of unemployment above 7.3%. gerry ford, jimmy carter and bush, the rate of unemployment
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was above that. the only president that was reelected with the unemployment rate above 6% was reagan. with the number at 7.8% right now, only one jobs report left, that is and alert. connell: how about the trend of the president and the trend of 8%. >> the trend is moving in the right direction. when you take a step back and look at that improvement from a 10% to 7.8%. it has been a decline known in the labor force participation rate. a lot of people have just given up looking for work. discouraged, if you will. that has reduced the denominator
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in the way the government calculates unemployment. dagen: how does that play out and of the election? we are so close to it. it has not really shown up in the market yet. do people directly apply nervousness to how they vote or what it have to have a material impact on, say, the stock market? >> i travel around the country talking to investor groups all the time. i ask for a show of hands about who has heard of the fiscal cliff. only a couple of hands go up. retail investors, average voters, if you will, are not really focused on this. we are because this is what we do for a living. our gdp expectations are around 1% because we are concerned about the chilling effect on businesses and consumers based
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on the potential impact of the fiscal cliff. our base case is the administration will be able to work through this. connell: this conversation got the three of us are having right now, would be a beneficial one for mitt romney to continue having. after the debate, the polls showed that president obama one. the same polls show that romney scored very high on the economy. >> i looked at, i was watching that debate on tv the other night, i thought the president did an excellent job and becoming much more engaged this time than he was the last time. the bar was very low there. governor romney did a very good job explaining things about the economy. i think the president explanations were a little light. there are a number of key issues that will be the focal point to the debate on monday.
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connell: fail, great to see you, by the way before you stole my questions. it is written down. mitt romney opening his biggest lead so far. nineteen days away from election day. juan williams as fox news political analyst. he joins us now from washington, d.c. what will move the needle the most? >> i think, you know, right now with the pulling the way it is, with romney having some momentum, you are not looking at that national averages, you are looking at the swing states. let's look at where they are spending their ad money right now. that is basically colorado, iowa and nevada did they are spending money like there is no limit to money in order to win voters in
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those states. the average has obama up by two. wisconsin looks to be back in play for romney, as well. dagen: the average is very close. like four tenths of a percentage point in favor of mr. romney. the overall. dagen: with this last debate to basically take back my last question that connell stole from me, the final debate being about foreign policy, this is a real wild card. it is not either one of these candidates strongest suit. will people even be interested in watching it so much as they were the first to conduct i look at it as a strong political
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present. it is taking place in florida. more so focused on what is this president's policy with regard to keeping iran from getting a nuclear weapon. what is he doing in syria? is he really a friend to israel? that will be romney's play. obama's play will be about immigration, to some extent, but also about how we have successfully gotten out of our rock and afghanistan. i think that it will have some relevance. it will not be a boring show. dagen: you can also type our energy policy into foreign
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policy. in terms of the ground organization, though, and getting out the demo, president obama still has the advantage there. >> yes. they are using advanced technology, you know, what they call high-growth targeting. in terms of the advertising, right now from this point out, romney has the advantage because he has stored up money and the advantage in terms of super pack money.
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dagen: incredible stuff. it gets more exciting by the day. glad to see you. >> take care. connell: i am giving her all the questions. that was pretty funny. a fine line of questioning. we will move onto an arraignment for this 21-year-old who allegedly wanting to blow up the federal reserve building. we will tell you who has initial target was. dagen: samsung galaxy is not as cool as apple's ipad. take a look. we are talking about energy and oil. take a look at where oil is trading today. ♪
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connell: back here on market now with some bad news. a new study revealing two thirds of graduate last year finished school with debt on an average
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of $27,000 each. 5% rise from the previous year. it may be tough for them to pay it back with the unemployment rate. then we have samsung galaxy, just not as cool as apple's ipad. that is the ruling. judges ruling against apple's claims that samsung copied the ipad registered designs. the court said that samsung's galaxy tablet did not infringe on the design because it is simply "not as cool." do not pick it up good listen up to this story. the 52nd rule for not picking up food -- clorox funded
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the study. there you go. looks yummy, right? dagen: what are you thinking about? connell: i am not. we are in that 65% that picks the food up off the floor. quick before it is 16 minutes past the hour. dagen: to late. earnings, nicole petallides. nicole: i am all about the five second rule. one of the large banks that passed the stress test. take a look at how it is faring right now. profit rose 28% in the third quarter. stock is down 4.5% right now.
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they have seen customers refinancing their mortgages. let's talk about blackstone. another name on the move. they posted their numbers for the third quarter. what they saw, we should know, obviously, and asset number type company, they actually had a good quarter. up 2.1% right now. connell: the fbi arrested this man for attempting to blow up the federal reserve building. dagen: 19 days until the election. both campaigns campaigning hard for the female vote. lou dobbs is here to wait and. take a look at world currencies. totally unrelated to, well, anything.
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>> i am jamie colby with your fox news minute. fighting across syria. the escalation shown in video. the rebels have required heavy weapons in recent days. there is other videos showing rebels in intense gun battle. in afghanistan, they are ready to take on full security in the country. a statement was made today at a news conference think the afghans are ready to expedite the transition if the u.s. coalition decides to speed up. it calls for troops to leave by the year 2014. the major meteor shower. the streaks have been seen over san francisco bay and other parts of northern california. that is your fox news minute. i like it. i am jamie colby. back to dig in and connell now. dagen: the man arraigned last
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night. prosecutors revealing the suspect entered the country on a student visa in january of this year. connell: holding those at the center of our economy. your thoughts on how the fbi handled this. >> i think it was handled very well. terrorists and those influenced by al qaeda have new york city and the u.s. in their crosshairs. as far as the impact, and economic impact, certainly there. we have now seen about 15 or so of these undercover sting operations here. it goes to show you that these
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people's intentions are continuing and we do not expect it to stop anytime soon. don: this one individual came into the country under a student visa. how many of them are there out there? should we be worried about this kind of terrorism? >> this is what everyone talks about, that lone wolf syndrome. that individual, if he did not come across the authorities, it indicates that there are many others like this out there. they are not the ones that we know when to training camps, sending transmissions to al qaeda operatives, they are running a bit below the radar. he was picked up by an informant that turned him onto the fbi.
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they picked up on his profile on some internet, social media websites. connell: and what areas -- dagen: obvious, is one of the words. connell: a lot of great work has been done in this city. greg kelly, on down and keeping us safe. very difficult to get near and has been sent 9/11. are we ready to the best extent that we can be for this type of thing? >> i think this situation is always changing. after 9/11, we looked at al qaeda being a centrally run organization. it is really spread as an ideology. people are being self radicalized. there are a number of things it can work into.
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the cyber attacks against our economy and financial systems is what i am most concerned about. the physical attacks and impact for our economy, that cyber attack, the thing that could bring down our financial systems even for a short period of time that have devastating consequences. after 9/11, osama bin laden said his main focus was to attack the economy of the united states. that is what they are after. whether symbolically done or hitting financial systems, that is what they are all about. connell: good to see you, as always. thank you. dagen: the clock is ticking. let's then three weeks until election day. lou dobbs is here. connell: lou will be here when we get back. first on market now. here is a look at some of the
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winners over at the s&p 500 on the market today. ♪
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dagen: the ladies are in place, there votes that is. president obama losing his lead slightly among women. what mr. obama needs to do to win us over. a new study finds holes in the tax study with mitt romney's debate. he makes how much? ashton kutcher tops forbes list.
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we give you the numbers, and, well, they may make you a little sick. connell: let's go to nicole petallides as we do every 15 minutes. what about nokia? nicole: the stock is down 1.3% at the moment. it has been a big ladder. it reported its sixth consecutive loss on thursday. right now, we are seeing it sell off. i want to take another look at the mobile realm. we focus so much on sprint. questions whether or not they would buy more clear wire. they are doing that. it is a design part of clear wire. sprint up just over a half
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percent. google, capital one financial, sandisk, microsoft, we will have more on those coming up good. dagen: breaking news. europe good want to see what their market did. ashley webster is here. ashley: european markets managing flight games. we did turn things around. the ftse up about .5%. the eu summit in brussels is underway. front president says it is vital that an eu banking union is agreed upon. guess what, germany saying hold
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your horses. any supervisor needs a proper track record of success. meantime, european commission president criticizing leaders for not doing more to develop growth across the eu. barroso saying today he is unhappy with the progress so far and is demanding a new sense of urgency. the debate goes on in brussels. a man died from an apparent heart attack. five people have now died during athens protest since 2010. as many as 50,000 protesters or more protesting outside the greek profile building. dagen: i just love listening to you so fluidly pronounce these foreign names. ashley: i do nottknow if it is right. dagen: you act like you know
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what you are doing. connell: ashley, as always, we appreciate it. ashley: likewise. connell: the push for the female vote. it has been obvious. boy, i am not sure about this segment. the democrats have been jumping all over this binder full of women comment that romney made. >> did you hear the debate last night where governor romney asked a direct question about equal pay. he started talking about binders. [laughter] the idea to go and ask where a qualified woman was, he should have just come to my house. he did not need a binder. [ cheering ] dagen: lou dobbs is with us, host of "lou dobbs tonight."
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it was the type of thing a consultant would say. not a reflection of how he feels about women. lou: is animation and runaway over-the-top performances. going after this binder comment -- the fact of the matter is, what he was referring to was his time as governor. during that time, people use binders. this is becoming a call on the left, i think, it is becoming, without question, a crusade of ignorance and they have run out of ideas. going after big bird and
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binders. this is as elevated as they get. they seem to llse all sense of what is real and what is not when they debate. connell: this idea of latching onto binders is silly. we all know what governor romney met to say. lou: what do you think he meant to say? dagen: he was a consultant. that is the way a consultant would provide the profits. connell: it is fine. lou: what i love is the idea that a number of these folks on the left are going crazy. they do not have enough iq points to get into the game with romney. the starkey stopped is no replacement for intellect or capacity or achievement or sensibility or values or a life that he has built over the course of his years.
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connell: president obama has advantages with women voters on and on and on and they are using this to get into that. lou: i think that romney is closing every poll. he is closing the gender gap. he has it just about even. in fact, he is now leading a double digits with dependence. the only people who seem to be lost and confused are the left of the mainstream media. the 12 keys swing states, women in this poll, putting abortion number one, abortion, number one in the gallup poll of swing states. that is an absolutely absurd poll, in my opinion.
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gallup, there is something wrong here. i do not know a single woman, i do not work with a single woman who is so one-dimensional that abortion is more important than you name it. the economy, social order, whatever you want. how about the euro zone crisis. four crying out loud, what country do they live in? connell: i do not know about the euro zone. [laughter] lou: abortion is assured in this country if she wanted. a woman has control of her body. free in this country to make decisions that pertain and understand the consequences. following behavior that is irrespective of values, irrespective of moral compass
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and instead trying to mitigate the consequences no matter how stupid the decision like running up $16 trillion in debt to we can talk about how to mitigate it rather than avoid it. does that give me the women's vote? dagen: you summed it up. the ladies matter. lou: ladies role. connell: that is for sure. dagen: lou, you can catch them every night 7:00 p.m. eastern time right here on the fox business network. what? connell: absolutely nothing. dagen: we will tell you about mortgage rates. connell: it is not dagen who is the highest entertainer. dagen: although we kind of look
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alike because he is a girly man. connell: it is ashen -- ashton we will be right back. ♪ [ male announcer ] this is sve. he loves risk. but whether he's climbing everest, scuba diving the great barrier reef with sharks, or jumping into the marke he goes with people he trusts, which is why he trades with a company
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that doesn't nickel and dime him with hidden fees. so he can worry about other things, like what the market is doing and being ready, nmatt what happens, which isn't rock science. it's just common sense, from td ameritrade. we don't let frequent heartburn come between us a what we love. so if you're one of them people who gets heartburn and then treats day afr day... block the acid with prilosec otc and don't get heartburn in the first place! [ male announcer ] e pill eachmorning. 24 hours. zero heartbur ♪ >> i have your fox business brief. mortgage rates once again closing in on record lows.
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according to freddie mac the average rate on a 30 year verbiage is -- just above its all-time record low. twitter implementing a policy to ban local content for the first time. the microblogging service blocked the account for a german neo-nazi group. have blocked content in specific countries if tweets violate local law. the battle for the holiday shopper is heating up. lightning deals every day until the number 18. this follows news by both target and best buy that they would both match the online prices of their competitors. that is the latest from the fox business network. giving you the power to prosper. ♪
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dagen: multivitamins may do more to fight cancer than originally thought. in the first long-term study of its kind, researchers found that older men who took daily vitamins lowered their risk of cancer by 8%. previous studies have not been so definitive which is why the latest dietary guidelines do not advise healthy people to take vitamins every day. the study came from physicians health study and look at pay -- pay -- you never know. connell: take your vitamins, but do not eat a lot of pasta. this is a part of the show where we try to help you out a little bit. a link between a high carb diet and all timers. if found those with high pasta diets had nearly four times the
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risk of developing cognitive impairment. according to this, cut down on the carbs. dagen: it has been a good couple of years for ashton kutcher. first he replaced charlie sheen on "two and a half men" and then he took his spot as highest paid actor. he pulled in about $24 million. there was a tie for the number two spot. each breaking and 18 million for their tv jobs. runner up includes alec baldwin and kim -- tim allen. connell: let's see what nicole
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petallides thinks. nicole: let's not say what i think about all of this. let's stick to the stocks. let's talk about dunkin' donuts. maybe you do not want to eat too many donuts. we have some news on dunkin' donuts. they will be opening new restaurants in salt lake city, utah. sixteen new restaurant in salt lake city. they will begin opening these in 2013. that will be something interesting. how about supervalu? that is a name on the move to the upside. they have been an active talks. you have heard some code words. the stock is up 5.4%. back to you. connell: thank you.
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moving back to governor mitt romney. he try to sell his plan for lowering tax rates saying you pay for it by capping deductions by a set dollar amount. watch this. >> how about deductions. burning rates down across the board for everybody, i will limit deductions and credits particularly for people at the high end. i will not have people at the high end pay less than they are paying now. the top 5% of taxpayers will continue to peg 60% of the income tax the nation collects. connell: we will talk about it today because there is a new study from the tax policy center that says limiting those deductions were not save enough revenue to pay for the tax cuts that romney was talking about. i know the romney campaign, david, is not a big fan of the tax center. they say the romney plan calls
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for $.8 trillion. a number that has been disputed by the campaign. a so-called deductions cap would raise -- >> we have editorialized on this. basically, they are leaving out a lot of things in calculating their numbers. you know, for the most part, all the work they have done setting brownies -- romney's taxes, that is why they are saying the math does not work. it is not fair to assume details that are not correct. that is what we have going on here. connell: that has become a political problem for governor romney. in fairness, he said i cannot have this negotiation before i am president.
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i cannot tell you what i am going to do. i do not want to put all the cards on the table. at the same time, there is a political problem in not saying how you will pay for something. how should he tackle that in a better way than he has? >> to tell you the truth, i don't know. president obama decided to pay later. he had a lot of specifics in his platform. ended up going a lot of it out the window when obamacare pass. with that he ended up with a lot of angry supporters. romney does not want that problem later. he takes the problem now. i do not really know which is the better way to go, to tell you the truth. brian try to make this argument with his debate with joe biden. he was interrupted by both,
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biden and the moderator. connell: it sounds like you are saying maybe it is just best to stay on course here. >> i do not think he is being hurt i this anymore. this was an issue a couple weeks ago. it showed romney doing so well on the economy. this is an issue where he used to be way ahead of obama. suddenly, he is way on top again. i do not think this is much of an issue at this point. connell: david, thank you. >> thank you for having me. dagen: sandra smith is up next with the trade. connell: stay tuned for that. take a look at some of the winners over on the nasdaq. that includes green mountain coffee. ♪ 4g lte is the fastest.
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so, which supeast 4g lte service would yochoose, based on this chart ? don't rush into it, i'm not looking for the fastest answer. obviously verizon. okay, i have a different chart. going that way, does that make a difference ? look at verizon. it's so much more than the other ones. so what if we just changed the format altogether ? isn't that the exact same thing it's pretty clear. still sticking with verizon.
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verizon. more 4g lte coverage than all other networks combined.
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connell: in the market right now, the third quarter earnings reports. dagen: sandra smith has the highlights. sandra: the winner is travelers after reporting much better than expected profit in the third quarter. that does not take away from the fact that arise in is the second best performer in the dow. it performed slightly better than expected performers. if you take a look at the broader market, that dow is just up eight points. those two are definitely helping him leading the way. taking a look at the leaders and
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the actual stocks. much better than expected profits. the ceo of the company saying we are very pleased with these strong results. they are contributing it to the lack of significant natural disasters of the quarter. take a look at verizon which is sitting at multi- year highs, not all time year highs. rising about 3% on the session. verizon share everything plan a huge thing for the company. one thing, the launch of the iphone5, everyone was waiting to see how verizon fared, they activated 650,000 units in just one week. those are your two dow units.
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connell: sandra, thank you very much. dagen: speaking of the dow, it is pretty close to its all-time high set 14 years ago. connell: cheryl and dennis is coming up good is it time to stay in or get out? that is straight ahead on markets now. ♪
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edging up -- cheryl: i am cheryl casone. dennis: i am dennis kneale. stocks or cash, uncertainty about the approaching election and the fiscal cliff, the dow near its all-time high. where should you put your money? our debate is coming right up. cheryl: we are seeing love for southwest airlines from investors. stock as of despite the profit falling short. i will go 1-on-1 with chairman
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and ceo gary kelly to see what he is doing to fix it. dennis: after an easy year run newsweek magazine making a major change. cheryl: coming up on the top of the hour. stocks every 15 minutes with nicole petallides on the floor of the stock exchange. big jobless claim number coming in. we were looking for those numbers as we change direction today. nicole: some of the traders seemed baffled by the weekly jobless claim is, looking at jump wheat -- monthly jobless claims numbers we got recently and wondering where the correlation is or isn't so we did see a jump in jobless claims this week and that set the town as it rose more than forecast. let's look at the dow and the s&p with up arrows gaining roughly 0.1%, the fifth today in a row we have seen gains for the dow of 13,078 and the nasdaq composite pulling back some. i want to take a look also at the data which came out with
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their quarterly numbers and profit on the rise, doing well with their core online business where they sell their goods but paypal is the key for them and that was a big contributor to their growth cup 4.7% for e day. dennis: they dow near its all-time high set just five years ago. is it time to get out of stocks? let's ask the ceo of sure best capital management and judy chang, investment strategist, to rain on this rally. you think it is time to sellout of some of this? >> on a short-term basis until the end of the year it is and markets, or in different than good but uncertainties are not good with questions on europe's ability to deal with the debt crisis and slowing down china and the looming fiscal cliff, i am telling you, how much more can you have to end the year?
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good to be cautious and take-off the table and get ready for this uncertainty over before jumping back in. dennis: what percentage of my stock should i sell to move into cash? >> when we look at history right now we are 40% invested on the 100% i want you about so that is what i will do. we start to get out of the market already in the middle of september. dennis: the free cats have been warning us about things that go wrong and stocks keep climbing. >> what our other guests are talking about are things that have already been well known by the market. the fiscal cliff isn't anything new. europe has been in the headlines for two years and everybody is talking market down. the reason is most people if you look at active managers are underperforming and you see we're in a bull market. everytime we have a pullback of
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2% or 3% market starts to rebound right back up again. that is indicative of a bull market. if you look where money is, pension funds and endowments, the average retiree portfolio they need in command returns. catches a nothing, cds saying nothing and government bonds next to nothing and the capital preservation risks. stocks are one of the best asset classes out there. dennis: as of september if you look at returns over the past two years stocks, reinvesting dividends of 8% per year catch,.6% per year. does it matter to put you in cash? >> that is exactly my point. what are you talking about? we are in a bear market since the fourteenth of september when the bull market three years ago we are in a flat market since 12 years ago. it depends on time frame. on a short-term basis too much
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uncertainty in the market. i am talking before the end of the year the fiscal cliff. to me there is more than one cliff. there are several cliffs from cliffs to slippery slopes to maybe mild mallon the. we don't know what is going to happen. everybody is this missing child. i was just there a month and half ago. it will be worse. i don't think we're going to go into recession hard landing but i expect a little more slowdown in china. dennis: stocks are on price-earnings 30% cheaper than their average over 20 years or so. >> exactly it. if you look at what projections are next year stocks that are not expensive and compare that to the risk free rate, historically they are very cheap so the idea is if you are antiquity investors this is what you are looking for. timing the market for 5%
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pullback that is a slippery proposition. china is slowing down, 7% growth today. a lot of that has been the infrastructure and real-estate buildup they stopped a few years ago when you have seen that way out in materials, industrial. if you look at the charts and industrial materials, take a look at deer and freeport mcnamara. the charts look good even on those laggers. if we look across the broad spectrum of the market looks pretty good. >> if you don't time the mark a three month basis or a five year basis because you invest on a 50 year basis you have absolutely got no return in to in the meantime how many -- [talking over each other] >> you got to trade the market to the front and this market has been going up for three years. whether that is cyclical not ask me in two years. >> everyone was telling us to
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sell when the dow was 6000. i didn't sell. i didn't lose. i am back up 90%. why not hold on to your stocks? why did it in and out like a freight at? >> we are talking not even the overall picture. depending which sector and which time frame you are talking about, even when short-term, not as bullish on the market but an overall basis i do agree that long marked for the past three years has been up. we have had 12 downward corrections averaging about 7.5%. we are not talking 1% or 2%. >> last question. which happens first? dow 10,000 or dow 17,000? >> dow 17,000. >> dow 10 k or 17 k? >> 17,000 first. seventeen thousand first. >> you can to our side.
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dennis: very spirited conversation. cheryl: a look at shares of southwest airlines after record growth, the airline reporting lighter than expected revenue for its third quarter. chance to speak to chairman and ceo gary kelly about a drop since the second quarter and how he is feeling about the road ahead. >> we had a great second quarter and all time record earnings july and august were a little off of our plan and september was pretty far off. the most i can make of it at this point is a broader economic weakness and it seems to be pretty consistent with a lot of the other economic data we have all seen and as you said october of course is a different story so october is more on the pace we were seeing earlier in the year and so far unit revenues in october up 4%, but it is a
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tenuous economy and just begs for cautious outlook. >> one of the analysts that covers stocks this morning wrote in a research note growth investors are abandoning southwest. stock going for your competitors like alaska and spirit. how you get the airline back and selling as a growth story? >> it is very simple. we have to hit our earnings target and grow our earnings and put ourselves in a position where we can grow the fleet, grow the route network. we have a number of opportunities to grow but it is not sensible to do that until we are hitting a return on investment. we have -- cheryl: you got to deal with a fourth quarter and higher jet fuel prices at record for the fourth quarter so you have that to deal with as well. >> in the near term again with
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demand being inconsistent and fuel prices being higher it is a near-term caution, but we have a plan and we have five strategic initiatives that are under construction to rollout beginning last year and through 2015. they bring significant value particularly in 2013 where we will be introducing a number of new revenue sources. i am optimistic about the future and southwest airlines is a great company and a wonderful brand with terrific culture and great customer service. we will be there and we will have those growth investors looking at southwest again. cheryl: let me ask you about changes on the corporate side. you hired a former tim geithner chief who will be running labor relations for you. newly created title. i you seeing some head wind with
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regards to labor relations in the next few months? >> i wouldn't call it head wind, but we always put our employees first. over 80% of our employees are unionized and we find ourselves at an interesting point in our corporate development if you will. we have a lot of challenges ahead. we always worked together well with our people and especially our unions and we need to continue to do that. we have a bigger company and randy is as good as it gets. so we will need to have a strategy, we will need to have open minds of communication, obviously close attention paid to administering our labor contracts and negotiating future contracts and he is the total package so we are delighted to have randy and i think he will
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be a great addition. cheryl: thanks to gary kelly, chairman and ceo of southwest airlines. dennis: gas comes in the ballot box, gas prices heading lower. a check in on how low they may be come election day and which candidate might benefit. cheryl: the women's vote is in place. what mitt romney needs to do now to get the ladies on his side but as we go to break take a look at the oil contracts, down 92-10 right now. we are right back.
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cheryl: coming upon 15 past the hour and stocks every 15 minutes. we are in the middle of earnings. you have a three regional banks reporting. nicole: we are going to take a look at two banks, the third bang and bb and tea on the move. let's look first year at what has been on a rise and reported an expansion in their margin and actually we have been falling at most banks but there it is up 5%. this third bank is up fractionally right now at 1515. this is the midwest regional bank with their quarter profits up and more money to cover possible mortgage repurchase requests. it is that 0.1%. this is the big loser of the
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three, down 5%. their earnings rose less than expected in the third quarter and going forward, fourth quarter net interest margin should fall. that was not good news below what was anticipated so you are seeing it down 5%. dennis: thank you. gasoline futures down 2% today. phil flynn of price futures group and fox business contributor is at the cme with latest. when might this drop show up at the pump? >> depends where you are in the country. it is happening in a big way. if you were in chicago prices have fallen over $0.49 a gallon in one month. they fell $0.20 a week. that may change with the refinery issue in indiana but right now they have come down but what is fueling the national average is problems in places like california where they have refineries is. those prices are at record highs so they are not officially keeping up. some parts of the country are
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saying these prices have been collapsing. other parts are saying what are prices going to move. another thing, yesterday's energy information administration report in supply and demand producing more gas than we are using by a couple million barrels a day. that should keep the price to the downside. cheryl: thank you, appreciate it. incredible video coming out of syria where the war between government rebels continue to escalate. we have more on that coming up. dennis: health care and the election. republican congressman and medical doctor phil being green on what romney has to do to get the votes. and what world currencies are doing to fare against the u.s. dollar.
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>> 21 minutes past the hour, your fox news minute. military forces have told the chief intelligence correspondence that the attack on the consulate in benghazi, libya may have been pre-empted an attempted drive western presence away from the area. sources point to a growing see i a presence in benghazi at the
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time of the strike. violence is continuing to spread across the area. you're looking at amateur video of government helicopter being shot down by rebel forces in the northern city of idiot --iblit. strikes killed 43 people. it is winner go home for the yankees as they face elimination in detroit this afternoon, game four was supposed to be played last night but rain pushed into a 4:00 eastern today and with a win, tiger clinched the title, a trip to the world series. please don't let it happen. i am at yankees fan. that is your fox news minute. dennis: president obama and mitt romney facing off over abortion, contraception and other women's issues at their latest debate. >> i just note that i don't believe bureaucrats in washington should tell someone what they can use contraceptives or not. i don't believe employers should
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tell. the president at statement of my policy is completely and totally wrong. dennis: ronny and the obama campaigns have been hit hard on women's health issues. republican congressman filled being read of georgia who is also a medical doctor, thanks for being with us. 90% of women, polls show, 90% of women approve of abortion rights in the case of danger to a mother. is it harder for the republicans to gain among women when that kind of opinion is out there? >> people have their opinions on this issue, a very divisive issue, no question about that, i am a strong catholic pro-life 0 b c y n physician and certainly opposed to abortion on demand that these are issues that very important to women and on both sides of that and i think we
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ought to be respectful to the sides of the issue but when it comes to the federal government forcing organizations like catholic schools, catholic charities for mormon religious organizations that they can force people against their will to provide something that is against their religious conscience whether it is abortion or to legation, the federal government has no right to be involved in things like that. dennis: why has ronny been able to gain in recent polls among women voters? >> the reason is because women care about the same things men care about. all this divisiveness is the absurd on the part of the obama administration. women care about jobs, they care about unemployment, they care about their tax rate, they care
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about particularly if they're single women with children -- i have a small business, we have 20 employees, 19 of them were women except for me. i have five grandchildren, wife of 42 years, i know about women and i know about their concerns and they are just like everybody else. you can't divide people by their race or their gender or ethnicity or religion but that is what the obama team is all about. dennis: polls show 30% of women see the abortion rights issue as a critical issue. is the romney campaign better off going after the economic message or, latest thing where they placed an ad quoting a former obama supporter a woman saying he is not so extreme against abortion as you think. what is the better sell? >> the better sell is the economy because so many women are head of households and the
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breadwinner. when my wife graduated college a few years back and women could only get three jobs, teach school, va secretary, or maybe a flight attendant for an airline as she was. now they are ceos. look at the obama -- don't look at obama -- look at the romney administration when he was governor of massachusetts and the number of women who were in executive agency head positions as chief of staff, his lieutenant governor, a different time, we can't let obama divide us. dennis: no one is using binders for anything. it is all digital. congressman phil gangrene. >> i didn't role lies or left condescendingly at any time in the interview. cheryl: i want everybody to know we are 19 days away from the
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election and starting tomorrow, featuring a series of guest debate on the issues that matter. first that energy, which candidate will bring down our gas prices. don't miss it at noon eastern time on markets now right up until election day. a rocky relationship at best between the president and israeli prime minister benjamin netanyahu. where the u.s. and israel really stand as we talk with israel's consul general. dennis: newsweek ending areas of the magazine print version. we will talk about that and today's winners and losers on the s&p. follow t wings.
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>> 30 past the hour, stocks
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every 15 minutes, and, nicole, dow up, but abbot labs down. >> they are discontinuing a late stage trial of the potential trial for chronic kidney disease and diabetes. it's a blow to the labs, and they are actually going to spin off on january 1st, branded prescription drugs into a new company, and now, with this news, this is not good news for abbott, and they have to focus more on the rheumatoid arthritis drug with more pressure. abbott labs down 5%. look at general motors and hewlitt-packard. # ,000 employees working with general motors move on to the employees' rolls.
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watching them as well. back to you. >> nicole, thank you very much. joining forces set to last for three weeks with the cost at $30 million all as iran continues anti-israel rhetoric. great to see you, ambassador. you just got back from israel. how is the prime minister feeling now about the tensions with iran? still concerned and angry as he was here in new york? >> well, it's important to note that our entire view on the iranian issue is it's not israel's problem, but it is true we are situated at the fore front by being there in the heart of the middle east, but w3 do think iran poses a threat to the entire international community, and as a matter of policy, we think that that problem should be handled by a well coordinated and
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orchestrated international effort. >> but things escalated in the region in just the last few weeks. a few days ago, shooting down an unmanned drone, and hezbollah behind it, it was unmanned, but more and more israel is on the defensive from all sides including what we see from syria right now. these exercises with the united states, how crucial is this? how certain are you that we may see some strike against israel by iran? >> well, you know, the iranian threat that we have to deal with is not a new threat. we see the iranian influence throughout the region for years, and not only in our region, but latin america, africa, and other places, and the military con confrontation with the united states, nothing now with that. we have been working with the united states, they are the best ally, and we do everything we do as part of the overall attempt and effort to improve.
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>> do you feel that way at this point, ambassador? mitt romney, close to our election here, and mitt romney says the president threw israel quote-on-quote, "under the bus". >> i won't go into the internal debate here, but the iranians mean what they say and say what they mean even without nuclear capabilities, iran is a serious problem to the entire world. in the early 1990s, they attacked twice in argentina. a few months ago, they attacked bulgaria and other places. we have to deal with the iranian problem on a daily basis all over the world. israel is no exception. they are targeted by the iranian effort. >> the gdp up 12%. we have breaking business news, we have to let you go, but thank you for coming in. >> thank you for having me. >> breaking news on the floor of
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the new york stock exchain. what do you have, nicole? >> they are yelling about google. google came out with earnings now here at lunchtime. take a look here. down $44, a drop of 6% right now, and they are all, obviously, following google closely. the chart shows you the disappointment of shareholders as it was shy of the estimate, earnings was supposed to be $10.65 and revenue at $11.86 billion so missing on both the top and bottom line for google. right now, 712.78. we continue to kohl it, quarterly report, but we are looking at the revenue as well. big picture here, paid clicks rose 6% over the quarter. that's interesting there. you know, i have to say it's coming out fast and furious, but
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long and short is google misses top and bottom line and comes out early up expectedly here at the 12:30 while they were out to lunch. they thought it was after the bell. >> they were supposed to report after the bell? do you think it was a mistake? do you think they say, oh, let's take the hit while it's trading. seems like a bad decision for investors. >> i can't imagine google decides they just release like that. i mean, it doesn't work like that; right? i mean, honestly these things are planned with conference calls, analysts and such. you can't just release. there must be a reason as to why -- unless some of it leaked out, and then you have to be fair; right? because of scc rules to be fair to all people and get it out. maybe it was leaked out. >> third quarter net cash, nicole, net cash from operating activities, $4 billion. the head count still the same. at least we're getting some
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positive numbers, but, again, i mean, you know, this was not released, told now, getting an e-mail from our director of business that this was not released by the company in error. it was a coordinated, specific move by google, nicole, to show the street here's what we're seeing. again, you know, not what we expected in the middle of the day. earnings are nine times out of ten after the bell. it's a bold must've in giving the bold report. >> the earnings per share coming in of 903, the estimates were for 10.65. that's a big miss. revenue at 11.33 billion missed. estimates for 11.83 billion. the company releases the numbers, but why did they do it? what happened? >> well, they missed by half a billion in revenue on an $11 billion revenue base in a single quarter. that seems for the entire value of the company to drop 9% now
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incidentally in response, you wonder whether traders are getting out too early. also, i just wonder because going's a great -- google's a great polls point and and leading indicator of economic growth, i wonder where they fell short on the revenue because that's a miss there, half a billion. cheryl: i was looking at headlines crossing, and you see the tape on the floor as well. 3.13 billion, and also the company saying they expect to continue to make significant capital expendtures. it's not like as you read through headlines here google's got massive problems, but just, indeed, the issues that the company talked about are not a big shock, i guess, i would say, but to dennis' point, nicole, it is a chance to take cash off the table on google and book process. dennis: cheryl, what the analysts look at on google is price per click and whether it's up or down. if you see anything on that,
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that could be worth a further look. google, of course, the biggest online advertiser, and on line ad sales continue to grow 7 p -- 7%, the highest growing of any advertising. >> i have the paid click. for the quarter, paid clicks up 33%. the cost per click down 15%. this took everybody off guard. supposed to be lunch time, and it's google earnings in the middle of the day. what do you think, jason? >> earnings are earnings whether released before the close, after the close, before the opening, doesn't change. obviously, people are disappointed, and, yeah, it's excitement, but normally, a slow period during the day. >> i know we're speculating here, and the company comes out and decides to release the numbers, but they don't move earnings times like that. what would be some of the reasons why they would release in the middle of the day?
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because they missed or could be something else? >> no, actually, i'm hearing they were released by mistake. they were not to be released until after the close. i think it was a mistake. i think because they've done it at a time where people are having lunch and not paying attention, there's a precipitous move on not a company by such great volume. >> how did you come with that? did you read that somewhere? >> the mistake part? they never report at this time, and we're hearing, you know, by, you know, people in the community that this was not supposed to be reported when it was. >> this always obviously so structured and so meticulous about exactly when they release earnings for so many reasons. it's a big move here. 8.5% lower. >> nicole, the website for google will be having a conference call at 4:0.
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could be it got released in a filing to the scc, and the company didn't put out an announcement, and a reporter picked up that filing and leaked early. nicole, ask the guest, they missed on earnings per share, a half billion dollars of revenue missed. is it an overreaction to be down 8%-10%. >> jason, when we talk about earnings per share at 903 veer sis the 10.65, and revenue at 11.83, how do you quantify this down 8.5%? justified or knee jerk reaction? >> an overreaction. people have a built in level of expectation. because the earnings released when they were, traders at the switch, not really investors or
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managers at the switch, and you see a move on maybe some diminished volume whereas people have the time to process, you know, the news properly and listen into the call, maybe you don't see a violent as a move. >> you start to wonder, like, legally, you know, when people have millions of dollars invest thed in something, and the junior guy at the switch, maybe making moves for you unexpectedly. what happens in this thing? it's the middle of lunch time. >> right. there's no laws to say when a company can or an't report, as long as everybody has ac says to the report. i think everybody does have access to he report. it's not against the law to miss a number either. the fact is that this has been a benchmark for the technology market, and you can see as the stock stabilizes, and now only down $56, you know, i just think when people -- people have time to process it, you see the price normalize. >> interesting to see where it
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is at the end of the day. it's back at 700 now. >> nicole, continue to get comem tear, but right now, bringing in adam who is standing by in the news room looking, again, at the filing. you know, looking at the stock right now. if we close -- >> seems to be recovering. >> it's recovering. i think the initial shock is wearing off and markets selling off pretty quickly when it crossed. >> when it first crossed the tape, google shares fell 6.5%, then 10%, and now 7%. as they go through it, google revenue's 11.5 billion or 8 #% of consolidated revenues in the third quarter and realize it's not time to get out of the stock. we have to see as we jump into this, as you talked with nicole, and the guest said it may be an overreaction. >> if we look at, now, seems to be within the filing, the scc filing, and as we just pointed
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out with nicole, adam, 4:30 eastern time release, after the bell, and there is a place that says, quote-on-quote, "pending," and looks like the company was not ready at this point, adam, to release the report. fair enough it would be out in a few hours, and here we are. >> people make mistakes. people can make mistakes if they sell now with google. it could be a problem, but 4:30, we'll find out what happened. dennis: more analysis with sandra smith at the hot board. >> just getting it up here, and as cheryl mentioned. that stock is coming back, down now 7%. there's the plunge showing the picture after google early reported earnings. again, not expected until after the bell tonight, but midday, lunchtime, we got google earnings missing on revenues and
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earnings forecast. here's the plong, coming back a little bit here as we approach the 1 p.m. eastern time hour, just at $700 a share here. remember, though, this is the biggest drop seen in google shares in month. i want to branch it to a year-to-date chart. google shares shot up over the last few months. there was skepticism, analysts lowering ratings heading into this, but the current close, guys, would be one of the biggest drops in quite some time here for google shares. the drop, guys, obviously, if i put up a one month picture shows the climb seen recently in the drop with the early earnings. we'll watch it, but this is the 700 level. only a few stocks actually in the 700 club. this is one of them, and, dennis, that's right, it's the curse. once the stock reach 700 level, they struggle. dennis: happened to apple. cheryl: sandra, we want to bring
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back in nicole on the floor of the new york stock exchange, the operating loss, nicole, for motorola. as we get details, whether we wanted them or not, and i don't think the company wanted us to have them, but here we go, nicole. >> that's right. they have motorola under their umbrella. chatting with jason, and we talked about the revenue, a half billion missed. i said it seems like a lot, and jason, you don't feel like it is a miss? >> i'm not an amist, it's a big number, and it's not a rounding error, but the company is a power house, and i want to take people back to when the company announced steve jobs is leaving, and look at how the investment community reacted to that adversely, and the stock dropped like a rock. look where it is today. it should be taken with a grain of salt, and until people listen to the conference call to understand what's behind the numbers, they shouldn't jump to
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conclusions. p dennis: guys, you talk tech stocks, but the other side, they missed 4% on revenue, missed by 15% from expectations on earnings, and cheryl may just really put it right when she said look at motorola mobility. google's results included, and that business is losing money. it was a stray from core confidence for google, an online advertising company, to buy a hand set maker. the losses are coming, and hence why earnings may be down 15% shy of expectations versus 4% miss on revenues, nicole? >> i'll bring that over to jason. i don't know if you're well-versed in motorola molt under their umbrella, thoughts on that? >> listen, the telephone market with the expectation of apple is a commodity market.
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it was a leap of faith to broaden the base for software applications. this could be the cost of doing that business. >> sometimes a near term cost and revenue later. cheryl: nicole, stand by. we have sandra and adam, everybody up in the news room, everybody at fox business going through the report tick by tick, line by line. rob, your initial reaction when you saw the tape that googles' results coming out at 12:40 eastern time. >> surprisingly bad. i don't think any of us were expecting them to miss and certainly not miss this big. this showcase is the fact their lack of focus is catching up with them. you know, most of the revenue still comes from the same original sources purring more and more cash into businesses that have not been successful, and apparently, that caught up with them. it was bad news for google. cheryl: what about the motorola
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issue? a huge loss for mobility. dennis neil mentioned this is the first time we get these results as well. does that factor into the thinking with the company? they make mistakes here, rob, with motorola? >> well, absolutely. it goes to the focus part. they are at their core an ad revenue company on the internet with search as the core technology, no business going into hardware at all. most mergers like this go badly, this one is catastrophically badly hurting the relationship with other phone makers who didn't want to compete with the company they bought stock from. this has not only a collective negative impact, but the fact they are unable to run motorola indicates a bridge too much for them. they, as a stock broke company, they have no business trying to run a hardware company. cheryl: rob, thank you for joining markets now during this breaking news coverage of
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google. releasing results, looks like as it was not meant to be. dennis: going into business against the makers against apple, and now half a billion dollars in motorola losses, and google stock down on that. we'll see if it recovers, and we'll be right back after this. [ male announcer ] you are a business pro. monarch of marketing analysis. with the ability to improve roi through seo all by cob. and you...renfrom national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. i'm going b-i-g.
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cheryl: breaking news that quarter released earlier than expected. ny cole standing by. the stock halt, nicole. >> let's see what happened over
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23 minutes. google stock headlighted, news pending, waiting to hear something why google released numbers here early around 12:30 coming out with profit and numbers that basically missed the profit and sales missing estimates op top and bottom line for google. traders were taken off guard in the middle of the day. google was supposed to report after the bell, but traded as low as 676, biggest one day percentage move that we have seen, biggest one day percentage drop in four years. we'll see what happens here, but obviously releasing earnings in the middle of the day was unexpected. back to you. cheryl: thank you very much. dennis: a note from a stock picker manager guys say he says google is a growth stock, and now earnings noun year of year, there may be growth funds saying
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good-bye to the stock, google today. sanity smith has more details. sandra? >> down 9%, halted in trading. a little gyration we saw prior to stock halting. take out the pen here just to show you prior to halting it, took another nose dive down to the lowest point that it had been since the news broke so stock is halted 687 a share, down 9% on the session, and this is happening, by the way, on heavy volume. volume over 6 million shares that you can see. some more come in obviously when the stock trades again. i want to point this out, guys, broader market, s&p down seven tenths of a percent and dow higher. nasdaq the worst performer thanks to google. you'll see what happened when google's news broke, nasdaq took a plong to the lows of the session, still at the 3 # ,000 level, but this weighs heavily
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on overall tech shares. one other thing was the big tech sector. red, lots of red. google weighing across the board on tech names. dennis: google sneezes, all tech catches a could. entire dow now flat, barely green as all. cheryl: we'll continue coverage of the surprise, surprise release of google's quarterly results in the middle of the market day. supposed to happen at 4:30 eastern time. news pending, melissa and lori pick up the coverage after the break.
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woman: she wants to be home with her friends. but at this moment, she's fighting a brain tumor. announcer: please take a moment and join st. jude
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in finding cures and saving children. visit stjude.org. >> shocker from going m announcing third quarter earnings in the middle of the trading day. straight to the floor, annie coal has more -- and nicole has more. >> google comes out with earnings per share and revenue both a miss on top and bottom
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lines. we saw the stock trade at 676, breaking the $7 # 00 mark. looks like a click some the traders described it as now it's halted for news pending. we'll find out more as to what google has to say whether it's pertaining why they released numbers early or other news. volume at the time the stock was halted, double the average daily volume over the past month, and the last thing to note is with a move like this, if it were to close down 89%, that would be -- 9%, that would be the biggest drop for google in four years. this, obviously, is a big reaction to stock to numbers for earnings per share and revenue that came out at lunchtime that were supposed to come out after the bell. the trading community up in arms on this one trying to move quickly on the numbers. >> thank you, we'll continue coverage this afternoon.